Hard Rock Hotel & Resort Fortaleza, Ceará, Brazil
Office: Horwath HTL Brazil
Category: Market Analysis, Financial Feasibility Study, Assistance in Concept Design and Assistance in Negotiations
Project description: Our Client took an option to acquire a large incomplete construction site near the beach in Fortaleza. He needed to show Hard Rock the existence of potential demand as to support a resort of 220 hotel suites and 175 attached residences. He also needed to convince Hard Rock to accept the ownership structure he has designed with his investment Fund (residential fractional with them keeping a share and the general control).
Horwath HTL solution: We conducted market research that showed the consistent demand of the Fortaleza area which served for Hard Rock understanding the potential of the location. We developed a model describing the financials of the project divided in (1) The sales of fractional units, (2) The operation as resort. We helped our Client to negotiate a business model with Hard Rock providing information, models, scenarios and different calculations.
Project status: Our Client signed the agreement with Hard Rock and his Fund approved the structure of the operation. He bought the asset which is currently under construction and expecting to open in Summer 2019.